The debate over raising the nation’s $14.6 trillion debt ceiling with Republicans challenging President Obama’s call for eliminating tax subsidies for oil and gas companies.
Mr. Obama, speaking in his weekly radio address, continued to pressure Republicans and Capitol Hill to reach an agreement, warning against a stalemate.
“We’ve got to cut the deficit, but we can do that while making investments in education, research, and technology that actually create jobs,” Mr. Obama said. “We can live within our means while still investing in our future.”
Mr. Obama said that while talks continue to remain stalled over differences in raising revenue and cutting spending, the president noted he remains optimistic.
“I’m confident that the Democrats and Republicans in Congress can find a way to give some ground, make some hard choices,” Mr. Obama said.
Mr. Obama’s call for a compromise comes just twenty-four hours after House Republicans called for a vote on a balanced budget amendment, saying the measure must be passed in order to gain Republican support for raising the debt limit.
“Broke or balanced — that’s the choice before us,” Indiana U.S. Senator Dan Coats said in the weekly GOP address. “The American people … want their elected officials to stop spending money we don’t have, and to enact policies that will grow our economy and get Americans back to work.”
With the August 2 deadline quickly approaching, the Treasury Department announced Friday that lawmakers will have to reach a compromise by July 22, providing Congress with enough time to craft and pass a bill raising the debt limit.
Treasury Secretary Timothy Geithner, who has repeatedly warned Congress to pass a debt limit increase, said Friday that he thinks Congress will reach an agreement and raise the debt limit.
“They [Congress] will act. They’ll do the right thing,” Mr. Geithner said.
